Indian national entrepreneur Abhinav Shashank has announced a new round of layoffs at U.S.-based healthtech unicorn Innovaccer as the company restructures around an “AI-native” operating model, according to internal communications circulated online and reports from Indian media outlets.
The San Francisco-headquartered startup, valued at roughly $3.45 billion, is expected to cut around 340 roles across India and the United States, marking its third major workforce reduction in four years, according to Inc42, cited by multiple reports.
“Today is a difficult day for us at Innovaccer,” Shashank wrote in an internal email to employees, acknowledging that some workers would soon be informed their “roles are ending.” He described the affected employees as people who had “shipped products, closed deals, supported customers, and carried this company through hard stretches.”
READ: US layoffs in first 10 days of May 2026: Nearly 38,000 jobs cut (May 10, 2026)
AI restructuring accelerates across startups
Innovaccer’s move reflects a broader shift unfolding across the global startup ecosystem, where companies are increasingly restructuring teams around artificial intelligence and automation tools while facing continued investor pressure to improve profitability.
Shashank reportedly framed the layoffs as part of the company’s transition toward becoming an “AI-native company,” a phrase increasingly used by technology firms repositioning operations around generative AI systems and automated workflows.
The company has not publicly disclosed which departments were most affected or how many layoffs occurred specifically in the United States versus India.
Founded by Shashank alongside Kanav Hasija and Sandeep Gupta, Innovaccer develops healthcare data integration and analytics platforms used by hospitals, insurers, and healthcare providers. The company has raised approximately $675 million in funding since its launch.
Born in Lucknow, India, Shashank studied mechanical engineering at the Indian Institute of Technology Kharagpur before moving into healthcare technology entrepreneurship in the United States.
READ: LinkedIn layoffs expand as Microsoft pushes AI-driven restructuring (May 13, 2026)
Online reaction highlights growing worker anxiety
The layoffs triggered strong reactions online, particularly among software engineers and startup employees already navigating an unstable hiring environment shaped by AI disruption and recurring job cuts.
On Reddit forums focused on India’s tech industry, users described sudden startup layoffs as increasingly common, with several workers recounting abrupt dismissals, frozen salaries, and shrinking job stability in venture-backed firms.
“Startup jobs can’t be completely stable,” one Reddit commenter wrote during a separate discussion on Indian startup layoffs, arguing that companies are under constant pressure from investors to scale rapidly while cutting operational expenses.
Others criticized the growing use of AI restructuring language to justify workforce reductions, warning that many firms appear to be prioritizing leaner headcounts over long-term employee retention.
Industry analysts say the trend is unlikely to slow soon. Data compiled by Indian business publications earlier this year showed thousands of startup jobs eliminated across sectors ranging from gaming to enterprise software as companies pivot toward automation-focused business models.
Silicon Valley pressure intensifies
The latest cuts also underscore mounting pressure inside Silicon Valley’s venture-funded ecosystem, where investors increasingly demand profitability after years of aggressive hiring and rapid expansion.
Technology executives across the United States have increasingly framed AI adoption not simply as a product opportunity, but as a structural workforce transformation capable of reducing operational expenses and reshaping hiring needs.
For employees, however, the transition has deepened concerns about job security — especially in startups where rapid scaling can quickly give way to abrupt restructuring when market conditions or investor expectations shift.